BYD's Thailand plant has reached a new energy vehicle production milestone about 26 months after starting operations, the Chinese automaker said on September 23rd, while production at the facility has slowed. Overseas factories are taking on a larger role as the company records increased export demand.

A white Atto 3 rolled off the production line in Rayong province on September 21st, according to local management. The Yuan Plus, sold as the Atto 3 outside China, was the first model BYD introduced when it entered Thailand in 2022. The company marked the production milestone alongside Rever Automotive, its local distributor under the Rever Group, at a media event at the plant.

Located in the WHA Industrial Estate, the facility is BYD's first wholly owned overseas passenger vehicle production base. Operations began in July 2024, and BYD has invested THB 35.9 billion (US$ 1.1 billion) in Thailand, according to figures presented at the event.

Production pace slows

The Rayong plant has averaged about 30% of its designed capacity over its first 26 months, while utilisation at the production rate recorded over the last 10 months is closer to one-quarter of its designed capacity.

The plant assembles five models: the Dolphin, Atto 3, Seal 5 DM-i, Sealion 5 DM-i and Sealion 6 DM-i. All five models carry "Made in Thailand" certification from the Federation of Thai Industries. Thailand remains BYD's largest market in the Asia-Pacific region. Cumulative deliveries in the country, including imported vehicles, have increased, according to the company.

Localised production

BYD employs about 6,000 people at the Thai plant, including about 5,700 Thai nationals, representing 95% of the workforce. Local content accounts for about 50% of components, and BYD works with more than 266 Thai parts manufacturers and distributors.

Of these, 125 are domestic manufacturers of materials and components, with more than 1,090 component items certified under TAI standards, according to details released during a media tour of the plant.

The Rayong facility covers the manufacturing chain from stamping, welding and painting to final assembly. A 7,900-ton automated press is used in the stamping shop, which can supply about 6,000 sets of body components a month.

Across about 70,000 square metres, the welding plant operates 20 production lines and uses up to 520 robots. Output reaches up to 45 vehicles per hour, while the lines can support up to 10 models. In the paint shop, 64 robots apply primer and topcoat, while a regenerative thermal oxidiser treats volatile organic compound emissions.

Battery production also takes place locally. A Blade Battery plant at the WHA Rayong 36 Industrial Estate, BYD's first battery-pack facility outside China, operates three lines. A wiring-harness plant produces about 6,500 sets a month.

Higher costs, higher taxes

Building cars in Thailand still costs more than importing them from China, Benson Ke, General Manager of BYD Auto Thailand, told media sources. He cited smaller production scale, research and tooling costs, and lower volumes at Thai suppliers.

BYD has met its local-production obligations under Thailand's EV 3.0 incentive scheme, Ke said. It has not yet met those under EV 3.5 and expects to do so in 2027.

Thailand's national EV board agreed in principle on September 10th to a tiered excise tax, with the highest rate applying to fully imported EVs, above the current 10%. Finance Minister Ekniti Nitithanprapas has said that a rate of about 30% is under consideration, while the finance ministry expects to finalise the rates by the end of September.

Pratarnwong Phornprapha, Chief Executive Officer of Rever Group, supported the change. He told media sources that the Thai market should now be a contest between companies that invest in the country and those that do not, rather than between Chinese and Japanese carmakers. He said the new structure would initially affect the prices of every Denza model and some BYD models, and that sales targets would need to change.

Export base for ASEAN and Europe

Rayong also serves as an export base, with exports accounting for about 40% of the plant's production in the early part of 2026, according to details from the media tour. Exports have been shipped to Europe, Australia and South Asia.

Rayong made its first shipment to Europe in August 2025, sending Dolphin hatchbacks to markets including the UK, Germany and Belgium. Eight-month overseas sales exceeded the level recorded for the whole of 2025.

Exports now account for about 43% of group volume, up from around 25% at the start of the year. Management raised its 2026 overseas target for the third time to 1.9 million-2.0 million vehicles and told investors that shipping capacity, rather than manufacturing capacity, was constraining overseas volumes.

Domestic sales moved in the opposite direction, with BYD's vehicle deliveries in China through August down 32.7% year on year. Export demand is also driving hiring at home. BYD's Xi'an base is recruiting several thousand workers after being retooled for its second-generation Blade Battery, according to a local daily. In Brazil, BYD's Camacari complex has more than 8,000 direct employees and is hiring 1,500 people for a third shift. In South-East Asia, BYD opened a second regional plant on September 3rd in Subang, Indonesia.

European plants

Europe is the next stage of BYD's localisation plans. The company's first European passenger car plant, in Szeged, Hungary, began trial production in January, with management expecting vehicle assembly to start in November or December.

BYD will ultimately need three assembly plants and one battery factory in Europe, special adviser Alfredo Altavilla said last week. The company expects to decide on a second site by year-end, with Spain and France among the preferred locations.

China-built BYD electric vehicles face a combined 27% tariff in the European Union: a 17% countervailing duty on top of the standard 10% import levy. Cars exported from Rayong avoid the countervailing duty, which applies only to vehicles built in China.

The EU's draft Industrial Accelerator Act would set a local-content threshold of about 70% for subsidies and public procurement. BYD said it would continue to expand local manufacturing, develop talent and strengthen its supply chain in Thailand.